Creating A Leasing Company

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Becoming your own banker really requires a shift in mind set. We’ve been programmed for so long with how things work that it takes awhile sometimes to reprogram ourselves to truly think like a banker would. The first time you hear about a 101 Plan, you’d probably start thinking about how you are going to use your Plan after capitalizing it.

For most people, that starts with paying off high interest credit cards or even car loans, but after diligently practicing the concept for some time you maybe begin to notice that the cash values in your policy will increase over time and at some point you may not have any more personal debt to finance, this is a wonderful feeling and perfect time to really start thinking like a banker would.

You see, in order to make money, banks and finance company must first have capital then they lend that capital to somebody else who needs it, for a fee. When the cash value in your policies begins to increase beyond your own needs, you can follow the lead of the finance companies by lending it out to others, for a fee.

For example, assume you were a dentist that wanted to purchase a new piece of equipment that cost $100,000, how would you pay for it? If you’re like most of the dentist who aren’t trained to think like a banker, you likely end up leasing that equipment. The leasing company would buy and own the equipment then lease it to you. Your monthly leased payments will be structured so you would end up paying back the original purchase price of the equipment plus some profits for the leasing company for letting you use their money to purchase that equipment. Depending on how the lease is structured, you would either own the equipment at the end of the lease period, or you could buy it at some agreed upon price. If you ever failed to make your lease payments, the leasing company could take back the equipment and lease it to another dentist.

With sufficient capital in your policy, you could actually start your own leasing company and began purchasing and leasing equipment to your own business or to other business owners. Remember, as the owner of your permanent life insurance policy, you have the contractual right to use your cash value for anything you want or whenever you want. This means you can buy equipment and lease it out to any business in any industry you want, whether it’s: x-ray machines for doctors, backhoes for builders, trucks for trucking companies, micro-loans to start up entrepreneur, like your children, or anything else. The key is to make sure that you personally are the owner of the policy, not the corporation who will be leasing the equipment from you, even if you are the sole owner of the corporation.

You will personally then purchase the equipment and lease it to the corporation ensuring to charge a high enough lease payment to cover the cost of the equipment. If you’re the owner of the corporation, who’s leasing the equipment, you can receive an interest deduction for the policy loans you took out to purchase the equipment. Since the loans are for a business purpose, plus you can depreciate the trucks over the reasonable time, if you structure the lease properly, you should definitely meet with the qualified professional to help you structure the lease agreements properly, develop any necessary amortization schedules, determine whether you should be adding more policies to help you establish separate entities, should that be necessary. Ultimately, with everything properly structured, you can make a very good living during retirement by just leasing out equipment to businesses.

By controlling the banking process, you’ll soon be in a position to stop supporting the employees and share holders of banks and finance companies through all the interest you’re paying to them and instead use that money to support you and your family, becoming your own banker will prove to be one of the wisest decisions of your life time. Contact a True Financial Age Advisor to learn more about this powerful concept.

Banking Process

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Imagine for a minute that you own a bakery; would you ever sell a loaf of bread to a distributor for 20cents? And then later go buy that exact same loaf of bread at the store for a dollar, of course not. That would be absurd, but ironically you’re likely doing just that with your own money. You see, while you might be in the business of selling bread, you’re definitely in the business of making money. Everybody is, that’s right. Whether you’re an employee selling your time and expertise to the company you work for or whether you’re a business owner manufacturing and selling widgets or services, you’re ultimately in the money business and so is everybody else. In fact, there is only one pool of money in the entire world, yes, one! Regardless of the fact that is manage by any number of institutions like, banks, insurance companies, corporations and individuals living in various countries and using different currencies. In the end it’s all part of the same pool of money.

In a way, it’s like water. About 75% earth’s surface is covered by water. When the sun heats it up, it evaporates into the atmosphere causing wind currents. The current takes the water vapor around the earth and precipitates out in the form of rain, sleet and snow. Along the way, some of it must flow thru us all or else we die, but in the end it all ends up back in to the oceans, it’s just one big cycle. The same holds true with money.

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Banking For Businesses

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It is been said that we are living in one of the worst economic time since the great depression. Banks are no longer lending like they used to. Money is tight, loans and credit lines are harder to come by. Retirement plans are down by up to 50% or more, and the government is looking to increase the amount that businesses and business owners must pay in taxes. There is no doubt that it is getting harder and harder for business owner like you.

If you’ve recently tried to get a loan or a line of credit from a bank, you know exactly what I am talking about. Even though you may have more money in your retirement plan than you’re looking to borrow, you’ll still have to; file an application with the bank, tell them exactly what you are going to use the money for, provide them with financial statements and possible audited statements on an ongoing basis, prove to them that you have the ability to repay, show them your past 3 or more tax return, provide them with a business plan, let them check your credit, put up some sort of collateral and still provide them with a personal guarantee.

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Automobile Financing

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Most research done on a car involves the Make, Model and reliability of the car. We occasionally get hung up on the color, the engine type and whether to buy new or used. After making our decision and doing all that research we go searching for our perfect car with only two objectives in mind-lowest price and the best interest rate.

Even if you were to get a car loan at just 8.5% APR, 18% of your car payments go towards interest. When you consider the number of car you will purchase over your life time, that’s a lot of money flowing away from you and your family. Let’s assume you’ll buy a new car every 4 years for the next 44 years, so 11 cars in total. Each car will be financed for $10,550 and you get an interest rate at 8.5% for 48 months. You have a choice with how to pay for these cars. There are really only 5 ways to pay for a vehicle: You can buy them through a bank or financing company, lease them with a contract, pay cash for them, use an interest savings account, like a CD or use your 101 Plan Insurance Policy. Let’s look at each method in further detail. Buying a car through a bank at 8.5% interest, would cost $260 per month, which is $3,120 per year, over 44 years that amounts to $137,280.

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Banks vs Insurance Companies

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Safety is a primary concern in any financial strategy taking a calculated, understood and informed risk is one thing, but exposing yourself to unnecessary risks, which could easily be avoided, is quite another. When it comes to money that you’re counting on and especially money you have worked so diligently to save, that expect to have access to during your retirement you better be sure it is stored in a safe place. But which places are safe? Massive amounts of advertising have conditioned us to store are money in banks both for short and long term storage, but are banks the safest place to hold your money? Rather than answer that question directly, let’s compare and contrast holding your money to bank versus depositing it with the insurance company via a permanent, dividend-paying, whole life insurance policy and then you can decide for yourself.

Let’s start by considering what the overall purpose of a bank or a life insurance policy is. There sole reason for existence is to make money, but who are they making money for? A bank’s primary responsibility is to make money for their stockholders so that they can get a return on their investment, after all, that’s why the bank was created in the first place, to benefit the stockholders. Stock-owned life insurance companies like AIG are also responsible for making money for their stockholders, just like banks they must keep their stockholders happy.

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